IDEAS home Printed from https://ideas.repec.org/p/ehl/lserod/86495.html
   My bibliography  Save this paper

Innovation mechanisms of fintech start-ups: insights from SWIFT Innotribe competition

Author

Listed:
  • Gozman, Daniel
  • Liebenau, Jonathan
  • Mangan, Jonathan

Abstract

The emergence of financial technology around the globe is driven by efforts to deconstruct and reimagine business models embedded within financial services. Entrepreneurial endeavours to this end are diverse. Indeed, the propensity toward complexity is considerable, bridging a range of financial services, markets, innovations, industry participants, infrastructures, and technologies. This study aims to improve comprehension of the global fintech landscape. It is based on the analysis of start-ups that participated in SWIFT's Innotribe competition. We used cluster analysis to group 402 fintech start-up firms, and then selected representative cases to create a foundational understanding of the structure of the fintech landscape. The main findings of this work are: (1) the development of fintech clusters to classify core services, business infrastructures, and underlying component technologies, which characterize fintech; (2) an analysis of how fintechs synthesize different technologies to restructure flows of financial information through competitive and cooperative mechanisms of disinter-mediation, extension of access, financialization, hybridization, and personalization; (3) an analysis of related strategies for value creation connected with the competitive and cooperative mechanisms that were identified. Collectively, our results offer new insights into the diversity and range of emergent innovations and technologies that are transforming the financial services industry worldwide.

Suggested Citation

  • Gozman, Daniel & Liebenau, Jonathan & Mangan, Jonathan, 2018. "Innovation mechanisms of fintech start-ups: insights from SWIFT Innotribe competition," LSE Research Online Documents on Economics 86495, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:86495
    as

    Download full text from publisher

    File URL: http://eprints.lse.ac.uk/86495/
    File Function: Open access version.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Garry Bruton & Susanna Khavul & Donald Siegel & Mike Wright, 2015. "New Financial Alternatives in Seeding Entrepreneurship: Microfinance, Crowdfunding, and Peer–to–Peer Innovations," Entrepreneurship Theory and Practice, , vol. 39(1), pages 9-26, January.
    2. Kauffman, Robert J. & Liu, Jun & Ma, Dan, 2015. "Innovations in financial IS and technology ecosystems: High-frequency trading in the equity market," Technological Forecasting and Social Change, Elsevier, vol. 99(C), pages 339-354.
    3. Peter Gomber & Jascha-Alexander Koch & Michael Siering, 2017. "Digital Finance and FinTech: current research and future research directions," Journal of Business Economics, Springer, vol. 87(5), pages 537-580, July.
    4. Glenn Milligan & Martha Cooper, 1985. "An examination of procedures for determining the number of clusters in a data set," Psychometrika, Springer;The Psychometric Society, vol. 50(2), pages 159-179, June.
    5. Jonathan Liebena & Tanai Khiaonarong, 2009. "Banking on Innovation," Contributions to Economics, Springer, number 978-3-7908-2333-2, January.
    6. Ron Adner & Rahul Kapoor, 2010. "Value creation in innovation ecosystems: how the structure of technological interdependence affects firm performance in new technology generations," Strategic Management Journal, Wiley Blackwell, vol. 31(3), pages 306-333, March.
    7. Daniel Gozman & Wendy Currie, 2014. "The role of Investment Management Systems in regulatory compliance: a Post-Financial Crisis study of displacement mechanisms," Post-Print hal-00962188, HAL.
    8. Roger L. M. Dunbar & William H. Starbuck, 2006. "Learning to Design Organizations and Learning from Designing Them," Organization Science, INFORMS, vol. 17(2), pages 171-178, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luz del Carmen Díaz-Peña, 2021. "FinTech's business model in Mexico, a preliminary analysis," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(TNEA), pages 1-16, Septiembr.
    2. Chand Bhatt, Priyanka & Kumar, Vimal & Lu, Tzu-Chuen & Daim, Tugrul, 2021. "Technology convergence assessment: Case of blockchain within the IR 4.0 platform," Technology in Society, Elsevier, vol. 67(C).
    3. Qi Jun & Hasan Dinçer & Serhat Yüksel, 2021. "Stochastic hybrid decision‐making based on interval type 2 fuzzy sets for measuring the innovation capacities of financial institutions," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 573-593, January.
    4. Gozman, Daniel & Willcocks, Leslie, 2019. "The emerging Cloud Dilemma: Balancing innovation with cross-border privacy and outsourcing regulations," Journal of Business Research, Elsevier, vol. 97(C), pages 235-256.
    5. Gang Kou & Özlem Olgu Akdeniz & Hasan Dinçer & Serhat Yüksel, 2021. "Fintech investments in European banks: a hybrid IT2 fuzzy multidimensional decision-making approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-28, December.
    6. Jiyoung Kimjeon & Per Davidsson, 2022. "External Enablers of Entrepreneurship: A Review and Agenda for Accumulation of Strategically Actionable Knowledge," Entrepreneurship Theory and Practice, , vol. 46(3), pages 643-687, May.
    7. Sultana, Saida & Akter, Shahriar & Kyriazis, Elias, 2022. "How data-driven innovation capability is shaping the future of market agility and competitive performance?," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    8. Shi, Daojin & Chen, Lunsong & Wang, Xiaoli & Xu, Xiuying & Yang, Lixia, 2022. "Rural venture investments with credits mortgaged on farmer's forests—A case study of Zhejiang, China," Forest Policy and Economics, Elsevier, vol. 143(C).
    9. Payam Hanafizadeh & Mojdeh Gerami Amin, 2023. "The transformative potential of banking service domains with the emergence of FinTechs," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 411-447, September.
    10. Anil Savio Kavuri & Alistair Milne, 2019. "FinTech and the future of financial services: What are the research gaps?," CAMA Working Papers 2019-18, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hiranya Dissanayake & Catalin Popescu & Anuradha Iddagoda, 2023. "A Bibliometric Analysis of Financial Technology: Unveiling the Research Landscape," FinTech, MDPI, vol. 2(3), pages 1-16, August.
    2. Saul Estrin & Susanna Khavul & Mike Wright, 2022. "Soft and hard information in equity crowdfunding: network effects in the digitalization of entrepreneurial finance," Small Business Economics, Springer, vol. 58(4), pages 1761-1781, April.
    3. Khalid, Fahad & Irfan, Muhammad & Srivastava, Mohit, 2024. "The impact of digital inclusive finance on ESG disputes: Evidence from Chinese non-financial listed companies," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    4. Maximilian Goethner & Sebastian Luettig & Tobias Regner, 2021. "Crowdinvesting in entrepreneurial projects: disentangling patterns of investor behavior," Small Business Economics, Springer, vol. 57(2), pages 905-926, August.
    5. Yuliya Snihur & Christoph Zott & Raphael (Raffi) Amit, 2021. "Managing the Value Appropriation Dilemma in Business Model Innovation," Strategy Science, INFORMS, vol. 6(1), pages 22-38, March.
    6. Luo, Sumei & Sun, Yongkun & Yang, Fan & Zhou, Guangyou, 2022. "Does fintech innovation promote enterprise transformation? Evidence from China," Technology in Society, Elsevier, vol. 68(C).
    7. Cristina Caterina Amitrano & Marco Tregua & Tiziana Russo Spena & Francesco Bifulco, 2018. "On Technology in Innovation Systems and Innovation-Ecosystem Perspectives: A Cross-Linking Analysis," Sustainability, MDPI, vol. 10(10), pages 1-15, October.
    8. Tatiana Zalan & Elissar Toufaily, 2017. "The Promise of Fintech in Emerging Markets: Not as Disruptive," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 11(4), December.
    9. Kwak, Kiho & Kim, Wonjoon & Park, Kyungbae, 2018. "Complementary multiplatforms in the growing innovation ecosystem: Evidence from 3D printing technology," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 192-207.
    10. Lucia Dalla Pellegrina & Giorgio Di Maio & Paolo Landoni & Emanuele Rusinà, 2021. "Money management and entrepreneurial training in microfinance: impact on beneficiaries and institutions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 1049-1085, October.
    11. Liu, Pei-chen Barry & Hansen, Mark & Mukherjee, Avijit, 2008. "Scenario-based air traffic flow management: From theory to practice," Transportation Research Part B: Methodological, Elsevier, vol. 42(7-8), pages 685-702, August.
    12. Hélène Syed Zwick & S. Ali Shah Syed, 2017. "The polarization impact of the crisis on the Eurozone labour markets: a hierarchical cluster analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 24(7), pages 472-476, April.
    13. Yang, Jialiang & Li, Yaokuang & Calic, Goran & Shevchenko, Anton, 2020. "How multimedia shape crowdfunding outcomes: The overshadowing effect of images and videos on text in campaign information," Journal of Business Research, Elsevier, vol. 117(C), pages 6-18.
    14. Baldwin, Carliss Y. & Bogers, Marcel L.A.M. & Kapoor, Rahul & West, Joel, 2024. "Focusing the ecosystem lens on innovation studies," Research Policy, Elsevier, vol. 53(3).
    15. Christina Theodoraki & Karim Messeghem & Mark P. Rice, 2018. "A social capital approach to the development of sustainable entrepreneurial ecosystems: an explorative study," Small Business Economics, Springer, vol. 51(1), pages 153-170, June.
    16. Bhuiyan, Muhammad Faress & Ivlevs, Artjoms, 2019. "Micro-entrepreneurship and subjective well-being: Evidence from rural Bangladesh," Journal of Business Venturing, Elsevier, vol. 34(4), pages 625-645.
    17. Spaniol, Matthew J. & Rowland, Nicholas J., 2022. "Business ecosystems and the view from the future: The use of corporate foresight by stakeholders of the Ro-Ro shipping ecosystem in the Baltic Sea Region," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    18. Mustafa Raza Rabbani & Shahnawaz Khan & Eleftherios I. Thalassinos, 2020. "FinTech, Blockchain and Islamic Finance: An Extensive Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 65-86.
    19. Delin Zeng & Jingbo Hu & Taohua Ouyang, 2017. "Managing Innovation Paradox in the Sustainable Innovation Ecosystem: A Case Study of Ambidextrous Capability in a Focal Firm," Sustainability, MDPI, vol. 9(11), pages 1-15, November.
    20. Goethner, Maximilian & Hornuf, Lars & Regner, Tobias, 2021. "Protecting investors in equity crowdfunding: An empirical analysis of the small investor protection act," Technological Forecasting and Social Change, Elsevier, vol. 162(C).

    More about this item

    Keywords

    business models; cluster analysis; data analytics; financialization; fintech start-ups; SWIFT Innotribe; technology ecosystems; technological innovation; value proposition;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ehl:lserod:86495. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: LSERO Manager (email available below). General contact details of provider: https://edirc.repec.org/data/lsepsuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.